It’s interesting how our contingency plans for our own lines line with the goals of company. Just as a company, we want everything to line up perfectly so there will be no need for the backup plan. We try our best to fix the problems we have with our first plan because we know the difficulties we will end up facing when implementing a whole new strategy. We are creatures of habit, and when out habits are affected by our environment (ie not having control of our surrounding situations) we panic which sometimes makes us initiate our plan B before we need to. We carelessly believe that because one situation has fallen out of our hands, we need to repair our image or situation by using contingency plan too prematurely. As managers in the real world, we have to be aware for our companies that we should not overreact to the small stuff. Even when our stakeholders are panicking and wanting to start things over, we are the ones who have to calm them down and make them realize that no plan B is needed for nothing.
Imagine that you are the owner of a small company that sells corporate gifts through an online store. You employ about 20 people. However, business has slowed down in recent months and you realize that the organization must move in a different direction if it is to survive. You have reset some of the company's overall goals and want to develop a plan to achieve those goals. You are anticipating the business environment to be volatile for next few years.
What type planning should you as a manager consider? Why?
Unfortunately, the first thing area I would be looking at is my 20 employees. I would have to look at ways of either downsizing those positions or…